Our client elected to transfer the marriage allowance to her spouse. Her earnings after the transfer were just above the personal allowance and gave rise to £20 income tax due.
HMRC have not reduced her personal allowance for the marriage allowance transfer so their revised SA tax calc shows no income tax due. Client has paid the amount we advised so HMRC are showing a £20 overpayment.
They INSIST their figures are correct. They show the married allowance on the tax calc as a 20% reduction (i.e. £250) against a Nil income tax bill - this would be correct for the tranferee position.
Am I going nuts or have they keyed this incorrectly at their end? If so, how is that possible if the SA100 tax return as filed is 100% correct in terms of the marriage allowance transfer?